Investment analysis is something that has been changed over the span of years due to the changes in trends and prices. We can’t say for sure that one trend will be the dominant one for ages, as every investment plan has to face a fall. But regardless of the ups and downs, it is the market that teaches you about every single aspect of the investment and how it should be done. Investment analysis, to simple define, is an analysis of how the investments are to be done in the future while keeping the past results in mind. With keeping that mind, investment analysis is the ultimate and the most sought tool for analyzing the market trends and investing interests of the past to be compatible with the future.
Investment planning strategy always involves a few factors which, as stated above require the events and conditions that happened in the past. What that means is that whatever the political, social, and economic conditions were in the past, they may not be the same and they will not be providing the same atmosphere for an investment to take place and complete its course to its fullest potential. Every minute detail related to investment is sought and is put in the consideration. With that being said, the economic environment is judged of the present to foresee what could be outcomes of the investment in the future and much they can or cannot change, as their stability is also a factor that needs to be considered. After carefully judging and relating the conditions and circumstances of the past, the investment planning is derived which will be in effect for a couple of years or so.
While there are various kinds of strategic investment planning, the major ones that are taught academically and widely used in the market are Top-bottom approach and bottom-top approach. The Bottom-Top approach helps in investment planning as it manages to allocate a major section of the investment in companies and places where it is required the most at present. This approach is more of a direct investment approach which does not bother about the on-going market trends and scenarios that could affect their investment in any possible way. As for the other major approach, Top-Bottom approach uses an entirely different scheme as it focuses its directions for the investment analysis on the economic circumstances and they may affect the investment in the future. This technique, instead of the former one, focuses deeply on the trends and prices of the overall market and how it may benefit or disrupt their entire progress.
All the techniques associated with investment analysis need to be updated from time to time. They need to be addressed thoroughly so that whatever may be the last investment, the future products of the investment are guaranteed to be fruitful and beneficial. If old methods are continuously regarded as the essential art of trade, they may need to revise, because trends and techniques to change and they are not going to be explicit, so before planning any investment strategy, one must be acutely aware of the modern day techniques.